Arizona School District Accounting and Finance

Are You in Compliance with Federal Cash Management Requirements?

2012-02-17T13:40:00.000-08:00

Recipients of advanced Federal funds must follow procedures designed to minimize the amount of time between the transfer of funds from the U.S. Treasury and disbursements.1 Pass-through agencies must establish procedures to ensure they receive reports on the cash balance and cash disbursements of its subrecipients. These reports must be timely so that complete and accurate cash transaction reports can be submitted to the Federal awarding agency.

The Arizona Department of Education (ADE) is the prime recipient of a significant amount of the Federal funding received by school districts in the State of Arizona. The ADE requires monthly cash management reporting for Federal financial assistance. These reports are due by the 18th of each month. This requirement assists the ADE in fulfilling its oversight responsibilities related to the Federal requirements governing cash management. In order to maintain compliance, districts may not accumulate excess cash. If excess cash remains, your district should contact the ADE to find out if excess monies should be remitted.

Noncompliance with cash management requirements could result in the ADE changing the payment method for your district to a strict reimbursement basis. This means that funds are generally disbursed based on the anticipated cash outlays for a period of up to 30 days and limited to a maximum disbursement of 20% of the budget in a month. Also, your district would be required to submit monthly expenditure reports prior to the disbursement of funds.

The scope of the Single Audit includes consideration of Federal cash management requirements. Therefore, it is likely that your auditors will review cash balances to ensure there is not an accumulation of excess cash.

Although the ADE serves as the pass-through agency for most Federal dollars received by Arizona school districts, you should also ensure that your district is meeting the compliance requirements for other advance funded grants passed through other agencies or received directly by your District.

1 According to the A-102 Common Rule, OMB Circular A-110 (2 CFR §215.22, Treasury regulations at 31 CFR Part 205 and 34 CFR§80.20(b)(7)), and most Federal awarding agency regulations

Implementing GASB 54 at Your District

2012-02-02T21:04:00.000-08:00

One of our founding partners, Gary Heinfeld, has co-authored the article "It's Time to Implement GASB Statement No. 54" with Bert Nuehring of Crowe Horwath LLP. Their article is appearing in the January 2012 issue of ASBO International's School Business Affairs magazine.

To read the full article, visit http://www.asbointl.org/AM/Template.cfm?Section=GASB_Articles_and_Resources&Template=/CM/ContentDisplay.cfm&ContentID=6120

Employer's Tax Guide for 2012

2012-01-19T16:26:00.001-08:00

The IRS recently released their Employer's Tax Guide (Publication 15) for 2012. It is available here: http://www.irs.gov/pub/irs-pdf/p15.pdf

Payroll Tax Cut Extention Includes Recapture Tax Provision for Higher Wage Earners

2012-01-03T12:37:00.000-08:00

As you probably have heard, the reduced payroll tax rate was recently extended through February 2012. (This continues the reduction of employees' Social Security tax withholding rate from 6.2% to 4.2% of wages paid through Feb. 29, 2012.)

However, the law also includes a "recapture" provision. This new provision applies only to employees who receive more than the Social Security wage base for the two-month period. Therefore, employees receiving more than $18,350 for January and February 2012 (calculated as two months of the 12-month amount of $110,100) will need to pay an additional amount equal to 2% of the wages received during the extension time. This "recapture tax" will be considered an add-on to income tax liability for higher wage earners and will be due in 2013 when the employee files his/her 2012 income tax return.

Additional info on the tax cut and the recapture provision are discussed on the IRS website: Payroll Tax Cut Temporarily Extended into 2012

AG releases fraud alert on billing schemes

2011-12-21T11:38:00.000-08:00

The Office of the Auditor General of Arizona recently posted a new fraud alert regarding fraudulent billing schemes perpetrated by employees. The fraud alerts lists some signs that will help spot these billing schemes, as well as some controls that will help prevent them.

http://www.azauditor.gov/Reports/Other/FAD/Fraud_Alert_11-03.pdf

1099 Webinar on 1-18-2012

2011-12-07T16:03:00.001-08:00

Health Care Legislation has had a huge impact on the way your Accounts Payable personnel will need to operate. This one-hour webinar will provide you with an overview of the 1099 rules and suggestions to improve your 1099 process.

For more info and online registration, click here.

Verify Your Payroll Deductions

2011-11-23T13:33:00.001-08:00

Recent legislation has impacted paycheck
deductions for political purposes after October
1, 2011. Under A.R.S. §23-361.02, public or
private employees are now prohibited from
making deductions for political purposes from
an employee’s paycheck unless the employee
gives written or electronic authorization on a
yearly basis. Violation of this law can result in
at least a $10,000 civil penalty for each violation
made by the employer.
(For the full A.R.S., visit: www.azleg.gov/Format
Document.asp?inDoc=/ars/23/00361-
02.htm&Title=23&DocType=ARS

Cash Handling Procedures webinar on 1-10-2012

2011-11-18T15:22:00.000-08:00

When establishing or reviewing internal controls, one of the highest risk areas is cash. This live webinar is designed to help you reduce risk in this area at your entity. We will discuss:
• Best practices for cash collection, reconciliation and documentation
• Recommended practices to ensure that cash and checks are not counterfeit or fraudulent
• Establishing safeguards against theft or loss

For more information and online registration, click here.

The Importance of Segregation of Duties

2011-11-14T14:55:00.000-08:00

By Marvin M. Mendieta, CPA, Audit Manager

A key element to maintaining strong internal controls in your district that help prevent and detect fraud is the implementation of segregation of duties. Segregation of duties entails separation of specific duties in a given transaction cycle (e.g. cash receipts) so not one person performs all the areas of that cycle. When properly enforced, it creates accountability among employees who are responsible for the specific areas of the cycle and helps minimize collusion.

To ensure segregation of duties is achieved, the following areas should be separated among different employees:
• Authorization/approval
• Recordkeeping
• Custody of assets
• Reconciliation

For example, in the cash receipts cycle, the employee who opens the mail and collects cash should not be responsible for authorizing or recording the transaction in the accounting system. Moreover, the employee preparing the deposit should not be responsible for recording the deposit or preparing the bank reconciliation.

In the cash disbursements cycle, the employee who approves invoices for payment should not be responsible for recording the invoices in the system. In addition, the employee who is responsible for making changes to the vendor master file should not be tasked with authorizing or recording vendor payments. Ideally, one employee should not perform more than one of the above areas to ensure proper segregation of duties.

However, sometimes segregation of duties can prove challenging to some districts with smaller departments and limited number of personnel. Even with fewer employees, it is still critical to separate duties as much as possible as a fraud-deterrent measure. When there are duties that cannot be separated, compensating controls should be implemented.

A recommended compensating control is a detailed supervisory review of the related duties performed by the employee of a given transaction cycle. The supervisory review should come from someone who is not involved in the authorization/approval, recordkeeping, custody or reconciliation procedures of the transaction cycle, thereby ensuring the reviewer’s independence.

Understanding the importance of implementing segregation of duties is critical in protecting the assets of your district. Ensuring employees are tasked with the appropriate duties and properly separating them will help your district manage and minimize risks of possible fraud.

H&M Partner Discusses Fraud Prevention

2011-11-08T14:28:00.000-08:00

Partner Cherie R. Wright was interviewed for "Be proactive to thwart fraud in your district," which appeared in the July 2011 issue of Managing School Business. In the article, Cherie discusses ways to remove the opportunities for fraud to occur at your organization.

For the full article, click here

Source: Managing School Business. Copyright 2011 by LRP Publications, P.O. Box 24668, West Palm Beach, FL 33416-4668. All rights reserved. For more information on this or other products published by LRP Publications, please call 1-800-341-7874 or visit our website at www.shoplrp.com.

Payroll Workshop for School Districts - in Mesa on 12/1/11

2011-10-31T09:23:00.000-07:00

Registration is now open for our workshop "Payroll Essentials for School Districts". This workshop will be offered at the Mesa Convention Center on Thursday, December 1st. .

With the calendar-year end approaching quickly, this workshop will provide a timely review of key areas needed for the upcoming payroll deadlines. Our workshops are taught by specialists in the governmental and non-profit industries. Topics will include:

• Employee payroll life cycle process (hiring, withholdings, termination, etc.)
• Taxable and non-taxable pay
• Understanding taxable benefits
• ASRS and PSPRS compensation and rate changes
• Identifying exempt vs. nonexempt employees
• Accounting for fringe benefit plans
• Quarterly payroll tax reporting and reconciliation (941s, A-1 QRT’s, Unemployment Reporting)
• Forms W-2 and W-3, including form updates
• Forms 1099 and 1096 and identification of employee versus independent contractor
• Updates: Recent IRS notices
• Review of IRS Compliance Check/Examination process

For more information and online registration, visit www.heinfeldmeech.com/hmu

New Requirement for Revenue and Expenditure Transactions

2011-10-26T08:41:00.000-07:00

Are you aware that soon your District may need to create and maintain a searchable database online of all of your revenue and expenditure transactions over $5,000? A.R.S. §41-725 mandates that all local governments establish and maintain such a database effective January 1, 2013. This law applies to all Arizona school districts with a student count of more than 600.

The online database must be available to the public free of charge and A.R.S. §41-725 outlines specific information that must be provided as part of the database. For the complete statute, visit the Arizona State Legislature website at www.azleg.gov.

However, the statute also currently provides another way for local governments to meet this obligation. Local governments may forego the online database by instead posting a copy of their Comprehensive Annual Financial Report (CAFR) on their website. The CAFR must have received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA). The deadline for the submission of CAFRs for these awards is December 31st following the end of your fiscal year. More information about the GFOA’s CAFR awards program is available at http://www.gfoa.org/index.php?option=com_content&task=view&id=35&Itemid=58

Our firm has been assisting local governments with the drafting and successful submission of CAFRs to GFOA for this award for twenty-five years. If you would like more information about how our firm can help you develop and submit your CAFR to GFOA’s award program, please contact:

Scott W. Kies, CPA, CFE
Managing Partner
602-277-9449, ext 308
scottk@heinfeldmeech.com

Cherie R Wright, CPA
Partner
602-277-9449, ext 376
cheriew@heinfeldmeech.com

FAQ on Temporary Use of Tax Credit Money

2011-10-14T12:42:00.001-07:00

Q: Where can I find the guidance on the temporary use of tax credit money for soft capital items?

A: The information is available through the Arizona Department of Revenues website and can be located here: http://www.azdor.gov/LinkClick.aspx?fileticket=7tg5M2-Lvpw%3d&tabid=240

FAQ on Auxiliary Operations

2011-09-23T21:53:00.000-07:00

Q: What level of detail are districts required to report Auxiliary Operations activity on the AFR?

A: Starting with the fiscal year 2010 AFR, districts are now required to report expenditure activity relating to Auxiliary Operations based on the function and object code. Additionally, Extracurricular Activities Fees are to be reported at the same level; function and object. This information should also be included in the electronic AUDIT FILE that is submitted to the Arizona Auditor General's Office after the Governing Board has signed the AFR.

Fund Balance Reporting Under GASB 54

2011-09-16T21:38:00.000-07:00

The implementation of GASB Statement No. 54 and the related Auditor General guidance will result in a number of changes to the District's financial statements in fiscal year 2011.

Partner Corey Arvizu has provided some guidance for Arizona school districts on how GASB 54 will affect 2011 financial statements for governmental entities. It is available to download on our website:http://www.heinfeldmeech.com/documents/GASB%2054%20Fund%20Balance%20Guidance.pdf

FAQ on calculating audit fees for Federal programs

2011-09-01T15:43:00.001-07:00

Q: For our AFR, what portion of our audit fees should be charged to audit services associated with financial and compliance audits (account code 6350) and what portion should be charged to audits related to Federal programs (account cost 6330)?

A: The District will have to estimate the percentage to charge to the Federal programs for audit services. There are a couple methods for making this estimation. One way is to determine the percentage of federal expenditures to total expenditures and allocating that percentage of the audit to the federal grants.

To determine which federal grants were audited in the year, you can look at the Single Audit Reporting Package, Summary of Auditors' Results.

Alternatively, you can look at the expenditures of just those programs to the total funds expended by the District and allocate the percentage of that calculation to the audit fees.

Consulting Solutions for Your Business Office

2011-08-23T17:32:00.001-07:00

Are you up to date on all the recent legislative changes related to Overrides, Average Daily Membership and Tax Credits? Do you worry if any vendors and/or services have reached their procurement limit? Are you maximizing the additional funding provided through the Teacher Experience Index? Do you avoid the concept of grant writing?

Our Consulting Division can train you and key staff members at your District on all of these important business office functions. Contact a member of the team today to learn more about how H&M can best support you.

CW Payne, CPA
(928) 774-4201, ext 204
cwp@heinfeldmeech.com

Tracy McLaughlin, CFE
(602) 277-9449, ext 307
tracym@heinfeldmeech.com

Karin Smith
(602) 277-9449, ext 327
karins@heinfeldmeech.com

Update to Using Extracurricular Activity Funds

2011-08-03T09:57:00.001-07:00

As mentioned in our last newsletter, Arizona legislation passed recently which allows schools to use up to 50% of unencumbered extracurricular activity [ECA] funds for short-term capital items. (This may include technology, textbooks, library resources, instructional aids, pupil transportation vehicles, furniture, and equipment.)

Please note that only ECA funds received in fiscal year 2010 or prior years are eligible for this provision.

Participating school districts must submit a report to the Joint Legislature Budget Committee by September 1st of each year. For more information on this required reporting, visit www.aasbo.org (link to information under "What's New" section of home page).

More guidance is also available at the Arizona Department of Revenue's website, located here: http://www.azdor.gov/LinkClick.aspx?fileticket=7tg5M2-Lvpw%3d&tabid=240

USFR Revisions Released by AG

2011-08-03T09:50:00.001-07:00

On July 15th, the Office of the Auditor General released their revisions to the USFR Chart of Accounts and Fund Accounting sections, as well as a list of COA changes. There is also an accompanying memorandum with details on the changes.

The updates (and memorandum) are available at the AG website at: http://www.azauditor.gov/manuals_schooldistrict.htm

If you have any questions, please e-mail asd@azauditor.gov, or contact Roger Walter or Amanda Winn at the Office of the Auditor General at (602) 553-0333.

New Issue of Newsletter for Arizona School Districts Available

2011-07-26T17:12:00.001-07:00

Articles included in this issue include:

-          ADM Compliance – A Summary of Fiscal Year 2011 Changes
-          Repeal of Expanded 1099 Requirements Passed
-          Pension Plan Accounting and Reporting
-          The Importance of Segregation of Duties
-          New Law Changes How Districts Can Spend Tax-Credit Donations
-          Client Spotlight
-          Upcoming Deadlines

You can download the newsletter at http://www.heinfeldmeech.com/docs/July_2011%20Imagine%20-%20School%20District.pdf If this link doesn’t work by clicking on it, please try copying the entire link into your browser. (You can also visit www.heinfeldmeech.com and browse to Resources > Newsletters > AZ School Districts.)

GASB 54 article features H&M partner

2011-05-22T23:34:00.000-07:00

Partner Cherie R. Wright, CPA, was recently featured in an article on GASB 54 appearing in Managing School Business. The article, entitled "Get ready to report district's fund balance in a new way," included an overview of the new classifications and some implementation tips.

The full article can be downloaded here: http://www.heinfeldmeech.com/documents/GASB%2054%20article.pdf

ADM Update for 2012 School Year

2011-05-14T12:01:00.000-07:00

The Arizona Department of Education confirmed yesterday (5/12/11) that House Bill 2385 relating to student membership has been suspended for fiscal year 2012. The procedures followed for fiscal year 2011 will continue to be followed for fiscal year 2012. Any additional information will be shared as it becomes available.

Upcoming Budget Deadlines

2011-05-04T16:54:00.001-07:00

Just a quick reminder regarding the deadlines coming up next week:
- Final budget revision must be approved by the District Board before May 15th
- Final budget revision must be uploaded to ADE by May 18th

A new law is temporarily changing how AZ school districts can spend tax-credit donations

2011-04-20T12:49:00.000-07:00

Passed yesterday, the new law enables districts to use up to 50% of tax-credit money for other items besides extracurricular activities, such as books, classroom supplies, library materials, technology and buses. The law enacts this change only for a period of up to 2 years.

http://www.azcentral.com/news/election/azelections/articles/2011/04/20/20110420arizona-schools-tax-credit-donations-spending.html#ixzz1K5mAe6Rs

Upcoming Deadline Reminder for April 15th

2011-04-07T12:28:00.001-07:00

Absence approvals are due to ADE by April 15th

Another 1099 Repeal Update

2011-04-07T12:26:00.001-07:00

On Tuesday April 5, 2011, the US Senate passed a repeal of the expanded 1099 requirements - the bill will now go to President Obama for signature. Both the American Institute of Certified Public Accountants and the Obama administration had been promoting the repeal.

For more info, visit the AICPA website: http://www.aicpa.org/InterestAreas/Tax/NewsAndPublications/taxnews/Pages/20110405.aspx

1099 Repeal Update

2011-03-07T08:09:00.000-08:00

Last Thursday (3/3/11), the House of Representatives passed a bill repealing the 1099 changes enacted by the Patient Protection and Affordable Care Act.

Since this bill is different from the one recently passed by the Senate, it will now need to go to the Senate for their consideration. Unlike the repeal passed by the Senate, the House's bill also repealed the new rental property 1099 requirements.

For more information, visit the AICPA's Journal of Accountancy article, here: http://www.journalofaccountancy.com/Web/20113926.htm

Update to 1099 Legislation and New W-9

2011-02-15T10:05:00.001-08:00

Last week the Senate has passed a repeal amendment of the recent 1099 changes and the House Committee is currently holding hearings on a similar repeal. Read more at http://www.accountingtoday.com/news/House-Considers-1099-Repeal-57296-1.html

Also, the IRS issued an updated W-9 form recently, which is available on their website at: http://www.irs.gov/pub/irs-pdf/fw9.pdf

No further guidance has been issued by the IRS at this time.

Reminder - End of February Deadlines!

2011-02-15T07:32:00.000-08:00

As you are probably aware, the end of February marks several tax reporting deadlines:

* Form 1096, Annual Summary and Transmittal of U.S. Information Returns, along with Copy A of all Forms 1099, must be filed with the IRS. (Also see article on page 2 of this newsletter: http://www.heinfeldmeech.com/docs/Dec_2008%20Imagine%20-%20schools.pdf)

* Form A-1R, Annual Withholding Tax Return, must be filed with the Arizona Department of Revenue. (A.R.S. 43-412)

* Form W-3, Transmittal of Wage & Tax Statements, along with Copy A of all Forms W-2, must be filed with the Social Security Administration. (IRS Circular E)

Also, by March 1st, Districts intending to participate in the Accounting Responsibility Program for following year & who have applied for an evaluation by the AG must notify the country treasurer and county school superintendent (A.R.S. §15-914-01.E)

Upcoming Deadlines for February 15th

2011-02-07T13:56:00.000-08:00

Just a quick reminder about a couple of items that are due soon (2/15) to ADE:
- Special Education Census
- English Language Learners (ELL) report

New Issue of AZ School District Newsletter

2011-01-24T08:47:00.000-08:00

We are pleased to provide Arizona school districts with the newest issue of our newsletter “Imagine." This newsletter is designed to be a quick-read digest of information valuable to business personnel at your district.

Articles included in this issue include:

- What You Should Know about the Changes to 1099 Reporting
- Tax Rule Changes for Employees’ Cells
- Client Spotlight
- New SAVE Contract
- Bond Disclosure Reminder
- Upcoming Deadlines

You can download the newsletter at http://www.heinfeldmeech.com/docs/Jan_2011%20Imagine%20-%20School%20District.pdf If this link doesn’t work by clicking on it, please try copying the entire link into your browser. (You can also visit http://www.heinfeldmeech.com/ and browse to Resources > Newsletters > AZ School Districts.)

Bond Disclosure Reminder - Due Feb 1st

2011-01-21T15:24:00.000-08:00

Just a quick reminder about the upcoming deadline for many governments. For more detailed information, see the below article:

Continuing bond disclosure is required by the SEC for any government issuing bonds of $10,000,000 or more after 7/3/94. This disclosure supplies the secondary market for government bonds with information on which to base their purchases. The deadline for disclosures is usually February 1. However governments do not need to submit their audited financial statements by their deadline. Instead, they may file the AFR before the deadline as long as the audited financial statements are submitted to the repositories no later than 30 days after they are received.

Instead of filing directly with the NRMSIRs and SIDs, you may utilize an Internet-based electronic filing system to upload documents. Entities should make their secondary market disclosure filings at the MSRB’s Electronic Municipal Market Access website. For details, visit MSRB’s website at: http://emma.msrb.org/AboutDataport.aspx

HMU Workshops on Student Attendance

2011-01-19T16:08:00.000-08:00

Registration is now open for our always-popular workshops on Student Attendance, to be held on Tues., Feb 22nd (Tucson area) and Wed., Feb 23rd (Mesa). This year's workshop has been updated to include changes in effect for this school year and will also provide an overview of changes for next year.

The instructors for this class will be Tracy McLaughlin, CFE, Consulting Manager, and Sara Specht, Audit Senior. Both Tracy and Sara bring two different perspectives from their experience - one as school district administrator and the other as an auditor - to this training.

For more information or to access or online registration system, visit www.heinfeldmeech.com/hmu

Our 25th Anniversary Celebrations Begin! - Special HMU Pricing for Clients

2011-01-05T12:46:00.000-08:00

In celebration of our 25th Anniversary, H&M clients will receive special registration pricing for all HMU Workshops & Webinars throughout 2011!

For more information about 2011 client pricing, see our website announcement.

For a listing of upcoming HMU workshops and webinars, visit our HMU calendar.

Upcoming Event - ASCPA Governmental Accounting Conference

2010-12-29T13:58:00.000-08:00

H&M is a proud sponsor of the Arizona Society of Certified Public Accountants' Governmental Accounting Conference, to be held on Feb. 4, 2011 at the Arizona Biltmore Resort in Phoenix.

Corey Arvizu, Audit Partner with H&M, will be teaching an afternoon breakout session on Single Audit updates. His session will discuss:
* The American Recovery & Reinvestment Acts
* Increased transparency and accountability in the federal grant environment
* An update of current A-133 projects and possible future revisions
* Briefings on the compliance supplement and the revised Yellow Book

Other speakers include Barry Melancon, president & CEO of the AICPA, David Bean from GASB, and City of Mesa Mayor Scott Smith.

Jennifer Shields, Audit Partner with H&M, also served as a member of this year's Conference Planning Commitee.

For more information, visit the ASCPA's website at: http://www.ascpa.com/Public/Catalog/CourseDetails.aspx?courseID=10GAC

Getting Ready for 1099 Preparation

2010-12-20T12:17:00.000-08:00

Now is a great time to begin thinking about getting 1099’s and W-2’s ready before the Jan 31st deadline.

Vendors need a 1099 if they are an independent contractor (not a corporation) and have received over $600 for the calendar year. Also, you need to send them to your attorneys as well.

Please begin to go through your vendor lists and identify who will be needing a 1099. Make sure you have a W-9 form filled out for each of them with the correct tax payer identification number. You can download a copy of the current W-9 form here.

If you are uncertain as to how to classify an independent contractor, a copy of Publication 1779 is available here.

For more help with preparing these forms, please contact Heather Jones at 602-277-9449, ext 332 or heatherj@heinfeldmeech.com

Reminder - Accommodation Schools Tuition Deadline

2010-12-20T12:07:00.001-08:00

By January 1st: Districts participating in an accommodation school agreement must remit tuition payments to the county school superintendent for accommodation school special education program costs.

AZ School District Wins 7th Consecutive Meritorious Budget Award

2010-12-13T12:01:00.000-08:00

Congratulations to Pendergast Elementary School District for receiving a Meritorious Budget Award (MBA) for the 7th straight year! This award is presented by ASBO International in recognition of excellence in school budget presentation.

Benefits of the MBA program include feedback about your budget from peers who are trained in up-to-date budget techniques. Your district will also receive a handsome plaque and certificate, a letter of accomplishment, and recognition in ASBO and AASBO publications.

If you would like to participate in the MBA program, applications are due no later than 90 days after legal adoption of the budget. For more information, contact ASBOI at (703) 708-7069 or visit http://www.asbointl.org/MeritoriousBudgetAwards.htm.

Our firm can also help your district prepare an award-winning budget. Contact Tracy McLaughlin at tracym@heinfeldmeech.com for more information.

Free Upcoming Webinar - "Consulting Solutions for Your School District"

2010-12-06T14:14:00.000-08:00

All school districts are facing difficult financial realities. As your independent advisor, we can assist you with the tough decisions required today. Attend our seminar and learn about our solutions to help your District.

Attend this free webinar and your entity will receive a coupon to attend any one-day HMU workshop or webinar within the next year.

Learn about how our Consulting Team can help you, including the following:

• Creating efficiency
• Reviewing compliance
• Policy effectiveness
• Staff trainings
• Loss avoidance
• Fraud reviews
• And more

Date: Tuesday, January 11, 2011

Times: 10:00 am to 11:00 am MST - All participants should log into the online system at least 15 minutes before start of the class.

For more information or online registration, visit www.heinfeldmeech.com/hmu

Upcoming Deadline Reminders for December

2010-12-01T16:26:00.000-08:00

Don't forget about these important deadlines coming up on December 15th:

1) The publisher’s affidavit of publication for the AFR must be filed with the Superintendent of Public Instruction (or no later than 30 days after publication).

2) Revised expenditure budget must be presented at a public meeting.

3) For grants received from ADE, districts should submit a cash management report to ADE for each special project with a budget of $10,000 or more.

Also, for December 18th: Revised expenditure budget must be filed with the county school superintendent

Registration now for Our New Audit & Accounting Training for Elected Officials

2010-12-01T15:29:00.000-08:00

This workshop will provide elected officials with information, guidance, and resources to help understand their oversight responsibilities for the accounting and internal controls function of the entity which they govern. The workshop will also provide practical information concerning the financial statement audit process.

The class will be led by Corey Arvizu, a recognized leader in the governmental auditing & accounting field. Corey has over 14 years experience working with governmental entities and is a frequent speaker at governmental and state accounting society conferences throughout the country.

For more information or to register online, visit www.heinfeldmeech.com/hmu.

Manager Tracy McLaughlin featured in ACFE article

2010-11-29T12:34:00.000-08:00

Consulting Manager Tracy McLaughlin is featured in the November 2010 issue of "The Fraud Examiner", the newletter from the Association of Certified Fraud Examiners. In the interview, Tracy discusses her CFE license and the advantage that this credential gives to her in assisting governmental agencies such as school districts.

For the full interview, visit http://www.acfe.com/memberprofiles/tracy-mclaughlin.asp

FAQ - Paid holidays required?

2010-11-18T12:53:00.000-08:00

The holiday seaons is fast approaching, so we thought it was good timing to post this FAQ:

Q: Under the Fair Labor Standards Act (FLSA), are employers required to offer paid holidays or pay time and a half or double time for working on holidays?

A: No, these benefits are generally a matter of agreement between the employer and an employee. FLSA does not require payment of time not worked. See also DOL's website: http://www.dol.gov/dol/topic/wages/holiday.htm

Upcoming School District deadline - Career Ladder Programs

2010-11-08T11:07:00.001-08:00

By November 15th - Districts may apply to the State Board of Education for approval or reapproval for a career ladder program. (Please note that annual reapproval is required!)

Upcoming School District Deadline - AFR publication affadavit due

2010-11-08T11:03:00.000-08:00

The AFR (or summary) must be published or mailed to each household (A.R.S. §15‑904) (by November 15, or within 30 days)

Our new consulting services contract under SAVE

2010-10-29T15:39:00.000-07:00

Heinfeld, Meech & Co., P.C. was recently awarded a contract for administrative consulting services that is open to members of the Strategic Alliance of Volume Expenditures (SAVE).

Services Offered: The services covered by this contract include accounting and managerial advisory services offered by our firm, including the following areas:

• Efficiency studies
• Risk assessments
• Internal control reviews
• USFR compliance
• Developing and/or reviewing policies and procedures
• VISIONS training
• Student Attendance assistance
• Transportation reviews
• Bookstore reviews
• Trainings and assistance with Student Activities, Auxiliary Operations and Parent-Teacher Organizations
• On-site training for your staff in policies and procedures
• Capital asset and inventory reviews
• Grant reporting and compliance
• Budget reviews and preparation
• Financial reporting
• Financial analysis
• Assistance with unclaimed property reporting
• Fraud reviews and investigations
• In-depth reviews of unusual transactions or discrepancies
• General accounting services (reconciliations, monthly reports, payroll, accounts receivable, accounts payable, etc.)
• Annual Financial Report preparation and reviews

Please note that this contract cannot be used for financial statement auditing services.

Questions? If you have any questions regarding this contract and what services we could offer you, please contact CW Payne at (928) 774-4201, ext 304 or cwp@heinfeldmeech.com.

Update to Form W-2 Reporting Requirement under New Health Care Law

2010-10-29T11:48:00.000-07:00

The Internal Revenue Service (IRS) recently released guidance stating that employers will not be required to report the aggregate cost of employer-sponsored health coverage on employees' W-2 forms issued for 2011.

This new reporting requirement, found in the Patient Protection and Affordable Care Act, became law in March 2010. The IRS has determined that the delay in the requirement is needed to provide employers with time to make changes to their payroll systems or procedures in preparation for compliance.

The IRS also expects to publish guidance on the new requirement later this year. The IRS also issued a draft Form W-2 for 2011, which includes the codes that employers may choose to use to report the cost of coverage under an employer-sponsored group health plan. However, this form is not required for coverage provided in 2011.

Both the IRS Notice and draft W-2 are available for download at http://www.irs.gov/newsroom/article/0,,id=228881,00.html .

AG issues USFR Memo on new procurement threshold

2010-10-19T12:44:00.000-07:00

On September 29th, the Office of the Arizona Auditor General issued USFR Memorandum No. 248, which includes information on the new bidding thresholds for sealed bids/proposals, written price quotations and oral price quotations.

For detailed info, see the AG's Memo here: Procurement Memo

Registration for Payroll/Employee Benefits workshops now open

2010-10-18T18:10:00.000-07:00

Our popular workshops on Best Practices for Payroll and Employee Benefits are back for 2010 and registration is now open! We will be offering workshops in the Tucson area (11/30), Mesa (12/1) and Flagstaff (12/2). These workshops are only offered once a year so be sure to register early to guarantee your spot. Registration and additional information can be found at www.heinfeldmeech.com/hmu

Upcoming Deadline Reminders for October 15th!

2010-09-30T18:10:00.001-07:00

A couple of deadline reminders - both for October 15th!
1) A copy of your AFR must be furnished to the Supt. of Public Instruction
2) School District Employees Report (SDER) is due to ADE

ADE issues Q&A to Memo 11-023

2010-09-27T15:57:00.000-07:00

On Friday 9/24, ADE issued an email with some FAQ regarding their Memo 11-023 Secured Payment Payback, dated 9/21/2010 .

In case you missed it, a copy can be found here: http://www.heinfeldmeech.com/documents/ADE%20Memo%2011-023%20Questions%20and%20Answers.pdf

Upcoming Deadline Reminder - Accommodation School Agreements

2010-09-23T10:54:00.000-07:00

On October 1st, Districts participating in an accommodation school agreement must remit tuition payments to the CSS for accommodation school special education program costs (A.R.S. §15-764.D).

Registration Now Open for School District Financial Statements Workshop on Nov 4-5

2010-09-21T14:16:00.000-07:00

The time is fast approaching for you to receive this year’s draft of your school district’s auditor-prepared financial statements!  The workshop will provide you with a road map on how your issued financial statements are prepared and will reinforce topics through the use of hands-on activities. This workshop is designed to assist school districts with understanding the auditor-prepared financial statements and to help ensure that an adequate internal control structure over the post-audit review of the financial statements.

  Day 1 (Thursday):
    Fund Financial Statements:
     - Governmental Funds (Balance Sheet; Statement of Revenues, Expenditures & Changes in Fund Balance)
     - Proprietary Funds (Statement of Net Assets; Statement of Revenue, Expenses & Changes in Net Assets; and Statement of Cash Flows)
     - Fiduciary Fund Statements

   Day 2 (Friday):
    Government-Wide Financial Statements:
     - Statement of Net Assets & Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets
     - Statement of Activities & Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities
    Notes to the Basic Financial Statements:
    - Components of the notes & how they agree to the basic financial statements
    Required Supplementary Information:
     - Budget to Actual Comparisons and the budgetary basis of accounting
     - Management Discussion and Analysis (MD&A) and the Letter of Transmittal - differences between the two
    Statistical Section

For more information or online registration, visit www.heinfeldmeech.com/hmu

Upcoming Deadline Reminder

2010-09-20T17:57:00.001-07:00

September 28th - Deadline for completion reports to be submitted to ADE for projects ending June 30th

New Issue of School District Newsletter Available

2010-09-17T18:21:00.000-07:00

Our September 2010 issue of our newsletter is now available at the below link. Lots of informative articles in this issue, including ones on risk/internal controls, updates to the school finance procedures manual, and recent changes in student attendance & Impact Aid.

http://www.heinfeldmeech.com/docs/Sept_2010%20Imagine%20-%20School%20District.pdf

FAQ - Calculating Federal Audit Costs

2010-09-16T08:52:00.000-07:00

Q: For our AFR, what portion of our audit fees should be charged to audit services associated with financial & compliance audits (account code 6350) and what portion should be charged to audits related to Federal programs (account cost 6330)?
A: The District will have to estimate the percentage to charge to the Federal programs for audit services. There are a couple methods for making this estimation. One way is to determine the percentage of federal expenditures to total expenditures and allocating that percentage of the audit to the federal grants.

To determine which federal grants were audited in the year, you can look at the Single Audit Reporting Package, Summary of Auditors' Results.

Alternatively, you can look at the expenditures of just those programs to the total funds expended by the District and allocate the percentage of that calculation to the audit fees.

Is your unclaimed property report ready for submission?

2010-09-09T13:46:00.000-07:00

Arizona Revised Statutes (A.R.S.) §44 Chapter 3 details and identifies unclaimed property. Unclaimed property includes but is not limited to such items as money, uncashed checks, drafts, state warrants, uncashed payroll checks, interest dividends or income, savings and checking accounts, safe deposit box contents, credit balances, customer overpayments, unidentified remittances, mutual funds and securities. Property is considered unclaimed when there has been no owner contact for a specified period of time, usually between 1 and 5 years.

Did you know you, as the holder of unclaimed property, are responsible and required to:
• Implement proper controls over property until transferred to the appropriate jurisdiction
• Perform due diligence by sending written notice to owner
• File an annual report with the State
• Remit unclaimed property to the State
• Maintain records of reports filed

Late fees and penalties can add up quickly! Civil penalties for intentionally failing to report include: 100% penalty for the value of the property not reported and $100 per day for each day the report is withheld up to $5,000. Employees responsible for filing reports who knowingly withhold reports may be prosecuted and subject to a fine of $1,000 plus one year in jail.

On a better note: Generally, if the entity finds and corrects a missed reporting on their own, the Arizona Department of Revenue will not assess penalties and interest. Arizona accepts Voluntary Disclosure Agreements and past due property can be reported without penalty.

During this time of tight budgets and continuous loss of revenues, do not incur additional expenses through hefty fines and penalties for failing to file your unclaimed property. If you need any help or assistance with filing you unclaimed property, contact Cherie Wright at (602) 277-9449, ext 376 or cheriew@heinfeldmeech.com so we can assess the best course of action to get you in compliance with the unclaimed property law.

AG issues FY 2010 AFR forms

2010-08-26T08:41:00.000-07:00

On August 25th, the Office of the Auditor General issued the AFR forms to be used for fiscal year 2010, along with an accompanying Memorandum (#247). Please visit the AG's website to read the Memo and access the electronic forms. http://www.azauditor.gov/ASD/PDF/School_Districts/Manuals/USFR_Memo_247.pdf

Also, remember that your District's electronic AFR must be submitted by October 15th!

Upcoming Deadline Reminder

2010-08-24T17:41:00.001-07:00

Your PEA/LEA Calendar is due to ADE before 8/31!

School District Deadline Reminder for Property Taxes

2010-08-16T10:43:00.001-07:00

Just a quick reminder about this upcoming deadline: Amount to be raised from primary and secondary property taxes must be fixed, levied & assessed by August 20th (A.R.S. §§15-992 and 42-304.B)

New HMU Workshop on School District Compliance

2010-08-09T17:27:00.000-07:00

H&M University is excited to announce a new workshop topic - "Getting Your School District into Shape - Understanding Compliance" These one-day workshops will be offered in Vail (Tucson area) on 9/28 and Mesa on 9/29.

The workshops will cover key areas of compliance for Arizona school districts. In addition to the compliance regulations, our instructors will review common findings and lead an open discussion on best practices for these areas. The planned workshop agenda includes discussion of the following areas: Segregation of Duties ; Procurement ; Capital Assets ; Inventories ; Accounting Records ; Information Technology ; Student Activities ; Auxiliary Operations ; and Attendance.

For more information or to register online, visit our website at www.heinfeldmeech.com/hmu

Change Coming for US Department of Education Grant Payments

2010-08-06T10:18:00.000-07:00

The U.S. Department of Education recently announced that the U.S. Department of the Treasury will begin making all disbursements for the Department of Education's grant programs effective October 1, 2010. The grant payments received by your District will then be subject to the Treasury Offset Program (TOP) effective as of this date (10/1/2010).

The TOP may impact your finanical management operations of your District. For information about the TOP, please visit the Treasury website at www.fms.treas.gov/debt/top.html.

For more detailed information on the TOP's potential impact on your District, please refer to the U.S. Department of Education's letter dated July 26, 2010: http://www.heinfeldmeech.com/documents/10-0581-TOP_Letter.pdf

HMU Workshop - Accounting Skills for Governments and Non-profits

2010-07-26T16:12:00.000-07:00

Registration is now open for this workshop - Day 1 is being offered on Friday, September 24th and Day 2 will be held on Friday, October 8th. (Although this workshop is constructed as a sequence, each day can also be taken individually.)

This workshop is specifically designed to teach accounting skills to personnel at governments (such as school districts) and not-for-profit organizations (NPOs). This series was extremely popular last year, so please be sure to register early to guarantee a spot.

For more information or to register online, visit www.heinfeldmeech.com/hmu

School District FAQs - Student Activities Bank Accounts

2010-07-22T11:03:00.001-07:00

Q: Can a school district's parent organization, booster club, or other outside organization open a bank account using the district's tax identification number?

A: No. A school district's tax identification number should only be used in association with the bank accounts that are legally authorized for school districts.

School District FAQ - Paying for Courses for Teachers

2010-07-16T13:55:00.000-07:00

Q: Is a school district in violation of the State’s constitution’s “gift of public monies” clause if it pays for courses taken by teachers?

A: According to AG Opinion I180-219, a school district may pay for courses taken by its teachers because those courses upgrade the educational programs of the district.

Arizona School District Budget Reminder for July 18th

2010-07-16T11:14:00.000-07:00

Don't forget: Your adopted expenditure budget must be uploaded by July 18th.

Upcoming Workshops on Student Activities & Auxiliary Operations for School Districts

2010-07-14T15:00:00.000-07:00

Our "Best Practices for Student Activities and Auxiliary Operations" workshops for Arizona school districts are now open for registration. The one-day workshops are scheduled for September 2010 and will be held in Vail, Mesa, and Flagstaff, Arizona.

The workshop will cover A.R.S. and USFR regulations for Student Activities and Auxiliary Operations Funds, Best Practices at Your School District, and What District Auditors Ask For.

These workshops are usually popular and are only offered once annually, so please register soon to reserve your spot.

For more information or to register, visit www.heinfeldmeech.com/hmu